The Chicago Boys (1970s–1980s) were a group of Chilean economists, named for their education under Milton Friedman at the University of Chicago. They enacted extensive neoliberal reforms in Chile, such as deregulation, privatization, and strict austerity. They provided an early example of shock therapy and influenced leaders around the world, including Ronald Reagan and Margaret Thatcher.
It is controversial whether or not their reforms were effective toward improving Chile’s economy. The Chicago Boys’ supporters argue that their leadership produced “the Miracle of Chile” and point to their reforms as an explanation for Chile’s present day success. For example, Chile was ranked by the Heritage Foundation as the most economically free country in Latin America as of 2022, its GDP rose greatly, and it returned to a democracy after the Chicago Boys’ influence. However, detractors point out that the rise in GDP came at the cost of a rise in wealth inequality. Additionally, these reforms were largely carried out by the military dictator Augusto Pinochet, who committed severe human rights violations in order to implement those reforms. This controversy is still vital to Chilean politics because of the Chicago Boys’ long-term impacts.
FURTHER READING
Matamala, Daniel. “The Complicated Legacy of the ‘Chicago Boys’ in Chile – ProMarket.” ProMarket, September 12, 2021. https://www.promarket.org/2021/09/12/chicago-boys-chile-friedman-neoliberalism/.
Valdés Juan J. Pinochet’s Economists: The Chicago School in Chile. Cambridge, UK: Cambridge University Press, 2008.
Sigmund, Paul E. “The Rise and Fall of the Chicago Boys in Chile.” SAIS Review 3, no. 2 (1983): 41-58. doi:10.1353/sais.1983.0040.
British Online Archives. “Miracle of Chile? The Legacy of the Chicago Boys | British Online Archives,” 2020. https://microform.digital/boa/posts/category/articles/378/miracle-of-chile-the-legacy-of-the-chicago-boys#_ftnref13.
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